Merck & Co., Inc. has achieved strong growth in net profit during the first half ended June 2008 and its net profit went up by 50 per cent to US$ 5,071 million from $3,381 million in the corresponding period of last year. The company's sales declined marginally to $11,873 as against $11,881 million. The earning per share worked out to $2.34 as compared to $1.55 in the last period.
For the second quarter ended June 2008, Merck reported earnings per share (EPS) of $0.86, excluding restructuring charges, as against $0.82 in similar period of last year. Worldwide sales were $6.1 billion for the quarter, a decrease of 1 per cent from the second quarter of 2007. Foreign exchange favourably affected global sales performance by 5 per cent for the quarter. Net income for the second quarter of 2008 was $1,768.3 million compared with $1,676.4 million in the second quarter of 2007.
"For the second quarter, Merck made good progress launching innovative new pharmaceutical and vaccine products around the world and driving efficiencies in many parts of the business," said Richard T. Clark, chairman, president and chief executive officer. "Although some results didn't meet our expectations, we are taking action to address our challenges, and remain committed to regaining leadership in the pharmaceutical industry.
"Earlier today, data for the SEAS study was presented by the primary investigator," he said. "We are moving quickly to fully assess the potential implications of the data for our cholesterol joint venture."
Marketing and administrative expenses were $1.9 billion for the second quarter of 2008, a decrease of 7 per cent from the second quarter of 2007. Included in marketing and administrative expenses in the second quarter of 2007 was a $210 million reserve solely for future legal defence costs for Vioxx litigation.
Research and development expenses were $1.2 billion for the quarter, an increase of 13 per cent from the second quarter of 2007.
Restructuring costs, primarily representing employee separation costs associated with the company's global restructuring programme, were $102 million for the second quarter of 2008. Total overall costs associated with the company's global restructuring programme included in materials and production and restructuring costs were $118 million and $172 million for the second quarter of 2008 and 2007, respectively, primarily related to separations and accelerated depreciation.